Curcumin is a hydrophobic polyphenol extracted from turmeric that exhibits a variety of biological functions has albeit with limited efficacy as a functional food material owing to its low absorption when administered orally. The newly developed curcumin powder formulation exhibits improved absorption rate in vivo. This study evaluates the anti-oxidant effects of Theracurmin® (TC), which is highly bio-available in curcumin powder. The antioxidant activity of TC was investigated using 2,2-diphenyl-1-picrylhydrazyl (DPPH) scavenging activity, ferrous reducing antioxidant power (FRAP) assays, NO radical, superoxide radical, H2O2 scavenging activity, and total antioxidant capacity (TAC). Additionally, we evaluated the antioxidant activity of TC in high-fat diet (HFD)-fed streptozotocin (STZ)-induced Type 2 diabetic rats. As a result of oral administration of TC for 13 weeks in type 2 diabetic rats, the group administration of 2,000 mg/kg significantly increased FRAP, superoxide dismutase (SOD), and reduced the level of glutathione (GSH) in liver tissue 1.9, 1.2, and 1.2-times, respectively. Furthermore, serum TAC levels increased by 1.3-fold after the rats were administered with a dose of 500 mg/kg. These results were consistent with the in vitro assay results. In conclusion, TC exhibited its potential as a functional food material through its antioxidant properties.